The broad dollar index (DXY) observed strong bidding Monday, largely on sterling’s demise, in which the index settled just south of 98.00. Also bolstering the USD was an overall solid ISM Manufacturing PMI reading.
Friday’s mixed Eurozone data, released in early European hours, was largely overlooked. EUR/USD bulls strengthened their grip on the back of a softer buck. The spread of the coronavirus continues to dominate market sentiment. Downgrades to the Fed’s assessment of private consumption and inflation target also contributed to the US dollar index (DXY) selling.
The Bank of England left UK interest rates on hold. The Bank also cut its growth forecasts and downgraded its expectations for productivity growth, in a sign that the UK economy has suffered from Brexit uncertainty.
Cable marginally firmed in US trade following the Federal Reserve keeping its benchmark interest rate steady, lifting price north of the key figure 1.30 on the H4, Quasimodo support at 1.2988, as well as a 78.6% Fibonacci retracement at 1.2884.
Release date: Thursday 30th January at 12.00pm GMT/07.00AM EST BoE Monetary Policy Report MPC Official Bank Rate Votes: Expected: 0-3-6 Previous: 0-2-7 Monetary Policy Summary Official Bank Rate: Expected: 0.75% Previous: 0.75% What Is the Bank of England? The central bank for the United Kingdom, the Bank of England, or BoE, is a public body … Continue reading Bank of England Preview
